Who owns and operates 'Commuter Club'

[Clip]

https://www.commuterclub.co.uk/index.php

ONE month of free TfL travel and lock in fares for a year

• Spread the cost of an Annual Oystercard for a low interest of 5.6%
• 11 payments at same cost as a Monthly - 1 month free travel
• No risk - Cancel your payments anytime
• no notice or penalty fees

EPRESENTATIVE EXAMPLE
Cost of Zone 1-4 Annual Travelcard (principal) and amount of credit of £1800 and interest of £101.
Total payable of £1901 over 10 months and 11 repayments of £173. Representative 14.3% APR. Interest rate of 5.6% p.a. (fixed).

I was just reading about this over on MSE and wondered who their 'Rail partner' are to supply such a financial product as its the first I have heard of them.

 

[Mojo]

They are based in a serviced office building and appear to be an independent company that has more connections with the financial industry (as they make their profits by charging interest). They don't appear to need to be connected to any transport organisation other than the contract that would be formed between any two parties when buying a ticket. All it seems they do is buy the tickets from their "rail partner."

 

[Clip]

Thast what I thought when I done a quick search for them, seems a bit odd to me given the credit they offer you that you can cancel at any time - is it a loan or not? Must be if they are charging you interest.

Dont like the look of that at all.

 

[PG]

In a nutshell it seems like they are a loan company - if you can get a loan for less then the 5.6% interest they charge then I'd steer clear.

Digging about it seems they are on their 3rd internet address, the previous two ending in com and net no longer work or are registered.
As for physical addresses so far I've uncovered four.

In answer to the question of ownership :
Commuter Club Ltd was registered on 30 May 2013 with its registered office in Slough, it currently has 2 directors - Mr Imran Gulamhuseinwala and Mr Petko Petrov Plachkov.

Other then them having a credit license there is little in the way of info to suggest that they are here to stay - caveat emptor !

 

[maniacmartin]

Also, for this annual ticket, they charge the cost of 11 monthlies, but TOCs only charge you for 10.5 monthlies, so they're profiting there

 

[drbdrb]

And if you don't pay, they cancel the oyster card.

How, unless it is registered in their name?

And if so does it matter that someone else (i.e. the person paying) is using it.

 

[MikeWh]

Looks like Greater Anglia are the rail partner, according to the FAQ page.

 

[Deerfold]

They could really do with a spam filter on their blog page...

 

[bb21]

The savings are exaggerated anyway. Buy your Travelcard from NR and no savvy traveller will buy monthly tickets on a rolling basis.

 

[Deerfold]

The savings are exaggerated anyway. Buy your Travelcard from NR and no savvy traveller will buy monthly tickets.

You would think they might link to 2014 prices now - it's more than a few days since they changed. They seem quite capable of adding more blog posts promoting the idea.

 

[bb21]

They seem quite capable of adding more blog posts promoting the idea.

While as you have noticed, done nothing about all the spam they are getting.

I wonder how many people actually work on that project IT-wise.

 

[GatwickDepress]

It wouldn't surprise me if it the blog posts were all prewritten and scheduled to post on certain days, to give the illusion of activity.

 

[jon0844]

There are many get rich quick schemes that use JavaScript to dynamically change dates for articles and blog posts, or more importantly deadlines for special offers, so it will always seem current. Incredibly simple to do, and obviously very misleading - yet nobody seems to do anything about them.

 

[34D]

And if you don't pay, they cancel the oyster card.

How, unless it is registered in their name?

And if so does it matter that someone else (i.e. the person paying) is using it.

Very good questions

 

[DarloRich]

it seems like a very similar finance offer that was available on my football season tickets. It is basically an unsecured personal loan offered by a third party credit agency - it has nothing to do with any transport company!

As an aside, surely this is something the railways SHOULD be looking at. It is becoming very difficult for many to afford the large upfront costs associated with a season ticket. There has to be a way to spread the costs that protects everyone

( no discourse on what form of transport is cheaper please - the central fact is that X£0000's in one go for your season ticket is a large sum of money! )

 

[Clip]

I see they have contacted MSE and put up and explanation

http://forums.moneysavingexpert.com/showthread.php?t=4906496

Thank you for your interest and queries about CommuterClub. We value feedback and appreciate your comments. We are a relatively new business currently in pre-launch and we welcome any further suggestions to help us improve CommuterClub or to make the proposition easier to understand. We have updated our FAQs to reflect the latest prices and improve clarity.

CommuterClub offers a low cost credit product for regular commuters, who do not have access to an employer loan and who could benefit from the savings of season tickets. Including interest, our customers pay for an annual in 11 monthly instalments at the same price as a Monthly Travelcard, with no additional fees if payments are made on time. We work in partnership with Greater Anglia to process and issue all Oystercards. We are authorised and regulated by the OFT, transitioning to FCA on 1 April, and our website is registered to our Trading Address, 23 Savile Row, W1S 2ET, London, UK.

CommuterClub uses a secured loan structure that gives customers the benefits of an Annual Travelcard while paying monthly at a low interest rate. Like all secured lending, if customers fail to make payment, as a last resort we would cancel the card and reclaim the remaining value, but our first step is always to contact the customer and collect payment before incurring any fees. All Oystercards are issued in our customer's name and are owned by them. As this is a secured loan, in the event of default the Credit Agreement assigns the right to cancel the card to CommuterClub. We do not have the right to cancel a card when payments are on time. Cancellation allows us to use the refund from TfL to pay off the outstanding loan, meaning the customer does not have any further obligations and we can offer an attractive interest rate. Because this is a loan, late payments could adversely affect credit score, this is captured in our Credit Agreement and we have made this explicit in the FAQs.

Our customers can certainly view their journey history at any ticket machine or TfL kiosk, and will soon be able to do so online. We follow the lost / stolen charges levied by Greater Anglia and National Rail, there are no additional costs levied by us. Unlike TfL, Greater Anglia do provide reimbursement for up to a week of travel while a replacement card is being issued. We are verifying with TfL the cost of new Oystercards that come with Annual Travelcards.

Hmmm

 

[maniacmartin]

I actually think it's a good idea and a shame TOCs can't do this themselves.

The terms say:

We are registered in England and Wales under company number 08549366 and have our registered office at 2 Church Street, Burnham, Slough, England, SL1 7HZ.

Our main trading address is 5th Floor, 3 Tenterden Street, W1S 1TD, London.

The registered address matches Companies House records. The main trading address there does not match the address in their footer or WHOIS, which is the Savile Row one.

Their OFT Consumer Credit Act license number checks out too (apart from having yet another correspondence address - probably one of the directors houses):

Application / Licence Details

Licence Number: 0659398
Licence Status: Current

Current Applicant / Licensee:
Business Name Company Registration Number
Commuter Club Ltd 08549366

Categories:
Consumer credit
Debt administration

Right To Canvass Off Trade Premises:
No

Trading Name(s) (Current):
Www.Commuter-Club.Com

Issued Date:
18-Jul-2013
Date Maintenance Payment Due:
17-Jul-2018

Legal Formation:
Body Corporate (incorporated inside UK)

Current Individuals that run the organisation:
Name Position
Imran Gulamhuseinwala
Petko Petrov Plachkov

Nature of Business:
Credit Agreements/loans (linked)

Current Address(es):
Address Type Address
Correspondence 12, Dewhurst Road, London, W14 0ET, United Kingdom
Principal Place Of Business 23, Savile Row, London, W1S 2ET, United Kingdom
Registered Office 23, Savile Row, London, W1S 2ET, United Kingdom

My instinct is that they are legit

 

[Deerfold]

Well they've sorted out their spam problem - by deleting all comments, legitimate or not.

 

[thedbdiboy]

I actually think it's a good idea and a shame TOCs can't do this themselves.

The main reason TOCs don't do it themselves is that any sort of financial loan requires compliance with a whole slew of specialist financial legislation. TOCs are in the business of running trains, not personal finance companies - this is why TfL are keen to expand C-Pay, because it means a bank handles the financial transaction.

 

[greatkingrat]

Southern already offer a scheme like this - if you buy 11 monthly season tickets via Direct Debit then you get the 12th months ticket free. This works out exactly the same cost as the Commuter Club scheme, but without the loan and possible credit problems.

 

[Tetchytyke]

Southern don't give you a Gold Card though, which can be a pretty decent perk.

This set up isn't really any different than buying an annual on a credit card, and an APR of 15% compares pretty favourably with a credit card APR of 25%.

 

[DarloRich]

The main reason TOCs don't do it themselves is that any sort of financial loan requires compliance with a whole slew of specialist financial legislation. TOCs are in the business of running trains, not personal finance companies - this is why TfL are keen to expand C-Pay, because it means a bank handles the financial transaction.

There is nothing to stop the msetting up a joint venture with a finance provider or contracting out the service - but then why bother when they can have all of the money in one go
--- old post above --- --- new post below ---

Southern don't give you a Gold Card though, which can be a pretty decent perk.

This set up isn't really any different than buying an annual on a credit card, and an APR of 15% compares pretty favourably with a credit card APR of 25%.

Assuming you are eligible for a credit card! Many are not. Often these third party finance providers offer the only style of credit available to the individual. Yes even those paying £000’s for a season ticket!

 

[Clip]

I actually think it's a good idea and a shame TOCs can't do this themselves.

The terms say:


The registered address matches Companies House records. The main trading address there does not match the address in their footer or WHOIS, which is the Savile Row one.

Their OFT Consumer Credit Act license number checks out too (apart from having yet another correspondence address - probably one of the directors houses):



My instinct is that they are legit

I dont doubt they are legit, far from it. I just dont like it. They are offering you an unsecured loan to purchase something. They then claim that they can cancel it should you miss some payments? Doesnt work like that.

You are taking out a loan. And If GA are complicit in this and are cancelling peoples tickets ebcause of a few missed payments to a loan company then that is very very wrong.

 

[island]

As an aside, surely this is something the railways SHOULD be looking at. It is becoming very difficult for many to afford the large upfront costs associated with a season ticket.

The railway already has products for people who are not in a position to buy an annual season ticket upfront. They're called weekly, monthly, 1m1d, 1m2d, ... 10m11d season tickets

 

[MikeWh]

I dont doubt they are legit, far from it. I just dont like it. They are offering you an unsecured loan to purchase something. They then claim that they can cancel it should you miss some payments? Doesnt work like that.

You are taking out a loan. And If GA are complicit in this and are cancelling peoples tickets ebcause of a few missed payments to a loan company then that is very very wrong.

This post has made my day!

You agree to pay at specific intervals to maintain the product. If you don't like the terms then choose an alternative way to pay for your travel.

You know, it's not that far away from the situation on the railways that staff claim is perfectly reasonable even though many people think its ridiculous. Yes, I'm talking about advance tickets. How reasonable is it that a major traffic jam betwen my house and the train station could make my entire ticket worthless? Or that a last minute change of plan meaning I want to leave the train one stop early isn't allowed ... even if the price of the tickets is the same ... no loss to anyone, but no, it's against the rules. Don't like it, then buy a flexible walk on ticket. Can't afford the astronomical cost, tough! take a car.

In a way, this is the perfect solution for people who can't get a loan another way. The major reason that you end up not being able to afford it is if you lose your job. If you lose your job you probably don't need the travelcard. With this scheme you are saved the hassle of claiming back a refund yourself.

And let's not also forget, the railway seems quite happy to threaten people who make honest mistakes with prosecution and a criminal record, even for just 10p. Compared to that, just cancelling the Oyster card with no further repercussions seems quite ... how shall I put it? ... reasonable.

 

[PG]

The railway already has products for people who are not in a position to buy an annual season ticket upfront. They're called weekly, monthly, 1m1d, 1m2d, ... 10m11d season tickets

Exactly
The whole ethos of getting the lowest per day price which is what an annual season ticket offers (plus the flexibility of stopping/starting short and using any train) is that the railway offers this to you in return for you giving it the cash up front! Ergo if you can't give it the cash up front well why should it give you the lowest per day cost?

 

[maniacmartin]

MikeWh beat me to it. I was going to make a similar post. If you stop paying, you only lose future use of the ticket, which you won't be paying for anyway. It seems reasonable to me. It is a secured loan, secured against the ticket

 

[Deerfold]

You are taking out a loan. And If GA are complicit in this and are cancelling peoples tickets ebcause of a few missed payments to a loan company then that is very very wrong.

Don't they say you're signing an agreement that they can do it? Doing it without someone's knowledge or permission would be wrong but they seem to be upfront, not hiding it in the small print.

 

[Clip]

This post has made my day!

You agree to pay at specific intervals to maintain the product. If you don't like the terms then choose an alternative way to pay for your travel.

You know, it's not that far away from the situation on the railways that staff claim is perfectly reasonable even though many people think its ridiculous. Yes, I'm talking about advance tickets. How reasonable is it that a major traffic jam betwen my house and the train station could make my entire ticket worthless? Or that a last minute change of plan meaning I want to leave the train one stop early isn't allowed ... even if the price of the tickets is the same ... no loss to anyone, but no, it's against the rules. Don't like it, then buy a flexible walk on ticket. Can't afford the astronomical cost, tough! take a car.

In a way, this is the perfect solution for people who can't get a loan another way. The major reason that you end up not being able to afford it is if you lose your job. If you lose your job you probably don't need the travelcard. With this scheme you are saved the hassle of claiming back a refund yourself.

And let's not also forget, the railway seems quite happy to threaten people who make honest mistakes with prosecution and a criminal record, even for just 10p. Compared to that, just cancelling the Oyster card with no further repercussions seems quite ... how shall I put it? ... reasonable.

Im pleased it made you laugh but I notice you brought in all sorts of stuff in to your post that has nothing to do with the thread in question - to muddy the waters maybe?

Whilst I respect your opinion on this I am still uncomfortable with offering this product and then still having the ability to cancel it - maybe at a whim or computer error or even because someone has not kept up repayments.

I dont see this as a secured loan at all, this is just a loan to buy a ticket with all sort of strings attached - like why can you not look at history on your Oyster?

And if people cant get a loan in another way then how will they ever get approved for this?

This is not like getting finance on a car or anything like that at all. I dont like it, I dont like the idea of it and thats the really.

 

[island]

The reason you can't view your Oyster history online is because they are keeping the username and password so they can get the card hotlisted if you don't pay.

And yes it is a secured loan. The credit risk is very low so they can offer an attractive rate.

Ultimately someone not liking something does not mean it should be banned.